By Alison Sider

Spirit Airlines is cutting about 200 jobs in its push to slash costs and match its smaller flying footprint, Chief Executive Ted Christie told employees Wednesday night.

Spirit last year said job cuts were possible as it aims to cut $80 million in annual costs.

"As you all know, we're facing significant challenges with our business," Christie wrote to employees in a message viewed by The Wall Street Journal. "The bottom line is, we need to run a smaller airline and get back on better financial footing."

The discount airline filed for bankruptcy last year to address its hefty debt obligations. Its business faltered in the face of more intense competition for value-minded fliers, and Spirit struggled to forge a path after a planned merger with JetBlue was blocked by a federal judge last year.

Christie said Wednesday that the bankruptcy process remains on track and Spirit hopes to emerge from Chapter 11 this quarter.

In addition to the job cuts across various departments announced Wednesday, Spirit had already furloughed pilots and offered flight attendants extended voluntary time off. Christie said in his message that the carrier had reached its cost-savings target, but the airline is looking at other ways to cut costs and boost revenue.

Spirit had close to 13,000 employees late last year, including roughly 2,000 nonunion workers, according to documents filed with the bankruptcy court.

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January 16, 2025 04:01 ET (09:01 GMT)

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